Obtaining a reliable supply of specialized coffees is extremely challenging, however. Most coffees are grown by small farmers
in impoverished rural areas of Africa and Latin America, who are trapped in a cycle of low productivity, poor quality, and
environmental degradation that limits production volume. To address these issues, Nestlé redesigned procurement. It worked
intensively with its growers, providing advice on farming practices, guaranteeing bank loans, and helping secure inputs such as
plant stock, pesticides, and fertilizers. Nestlé established local facilities to measure the quality of the coffee at the point of
purchase, which allowed it to pay a premium for better beans directly to the growers and thus improve their incentives. Greater
yield per hectare and higher production quality increased growers’ incomes, and the environmental impact of farms shrank.
Meanwhile, Nestlé’s reliable supply of good coffee grew significantly. Shared value was created.